TORONTO, Ontario, Nov. 14, 2006 (PRIMEZONE) -- Wireless Age Communications, Inc. (OTCBB:WLSA), a leading supplier of solutions to the Canadian wireless communications industry, today reported its financial results for the third quarter, ended September 30, 2006.
Consolidated revenues for the third quarter of fiscal 2006 were $8,906,723 up from $7,648,974 during the second quarter of fiscal 2006 and $6,743,505 in third quarter of fiscal 2005 -- growth of 16% over the most recent quarter and 32% over the same period a year ago. Retail business segment revenues were $3,615,719 up from $3,392,595 in the second quarter of fiscal 2006 and up from $3,026,972 during the third quarter of fiscal 2005. Commercial business segment revenues were $5,291,004 up from $4,256,379 during the previous quarter and up 42% from the $3,716,533 posted during the third quarter of fiscal 2005. Net loss for the third quarter of fiscal 2006 was $1,468,410 compared to earnings of $271,431 a year ago.
Company CFO Gary Hokkanen stated, "I'm pleased that the operating results from continuing operations for the third quarter were substantially better than the second quarter. Overall profitability was not possible for three reasons; a special $1,707,153 non-cash accounting charge arising from the recent equity financing, the new Vancouver regional operations centre not yet achieving break-even operating results and costly interest rates on working capital borrowings. In addition, we've determined that the best way to maximize shareholder value over the long term is to divest of the Wireless Works or Networks division. As a result, the Company has segregated the operating results of the division from those of continuing operations, and shown them as discontinued operations. Classifying results in this manner allows the reader to understand continuing operating results as if the discontinued operations had already been disposed of. For a more detailed explanation of these matters I encourage all interested parties to participate in the Company's third quarter results conference call on Wednesday, November 15th."
The company's Chairman and CEO, Brad Poulos commented, "We've just completed a string of six consecutive quarters of record revenues and I'm confident that the fourth quarter of 2006 will be the seventh. Operating activity was higher across all operating segments and many of the efficiency measures we have put in place are beginning to reflect in our results. The management team and I are very bullish about 2007."
Three Months Ended Nine Months Ended
Summary financial September 30, September 30,
information
(unaudited): 2006 2005 2006 2005
---- ---- ---- ----
Sales including
commissions and
residuals $8,906,567 $6,743,505 $23,576,166 $17,100,918
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Total gross profit 2,584,669 2,369,519 6,955,144 6,030,371
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Selling and
administrative
expenses 2,240,329 1,908,576 6,340,045 4,847,585
Special charges -- -- 510,000 --
Pre-operating costs 190,299 -- 190,299 --
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Earnings before
interest, taxes,
depreciation and
amortization 154,041 460,943 (85,200) 1,182,786
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Amortization 124,667 85,303 298,556 209,965
Other expenses(a) 1,853,301 22,006 2,217,299 84,069
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Net income (loss) from
continuing operations,
net of tax recovery (1,123,927) 353,634 (1,659,055) 888,752
Loss from discontinued
operations, net (344,483) (82,203) (619,270) (169,000)
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Net income (loss) $(1,468,410) $271,431 $(2,278,334) $719,752
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Basic earnings (loss)
per share $(0.048) $0.009 $(0.077) $0.026
Diluted earnings
per share -- $0.009 -- $0.026
(a) 2006 figures includes $1,707,153 dividend expense on issuance of
preferred stock
Management of Wireless Age will conduct an investor conference call to discuss 3rd quarter results. The call will be held at 4:15 p.m. Eastern Standard Time on Wednesday, November 15, 2006.
Instructions for hearing the conference call: To hear the conference call as it takes place: Call 1-866-585-6398 in the United States or Canada or; If there are any problems please call the local number: 416-849-9626 To hear a recording of the call: Call 1-866-245-6755 in the United States or Canada or; If there are any problems please call the local number: 416-915-1035 Passcode: 78910
Shareholders are urged to review the complete financial statements which are available on the website of the SEC at www.sec.gov.
For all Wireless Age investor relations needs, investors are asked to visit the Wireless Age IR Hub at http://www.agoracom.com/IR/WirelessAge where they can post questions and receive answers within the same day, or simply review questions and answers posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to WLSA@agoracom.com where they can also request addition to the investor e-mail list to receive all future press releases and updates in real time.
About Wireless Age Communications Inc.
Wireless Age's operations are segregated into two distinct segments, Retail and Commercial.
Retail:
Wireless Age retail outlets sell next generation wireless products and services to business and individual end users in Saskatchewan and Manitoba.
Commercial:
Within the Commercial segment, mmwave does specialty distribution and network engineering and integration for carriers and manufacturers of communications equipment in Canada. Wireless Source distributes prepaid phone cards, wireless accessories, land mobile radios and ancillary electronics products to dealers throughout North America. Wireless Works operates broadband public access and private networks in Southern Ontario, and develops and deploys consumer and commercial products for those networks.
The company is a recognized leader in the wireless industry in Canada and is a member of the WiMax forum, as well as a very active member of the Canadian Wireless Telecommunications Association.
This press release contains "forward looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on currently available competitive, financial and economic data and management's views and assumptions regarding future events. Such forward-looking statements are inherently uncertain. Wireless Age Communications, Inc. cannot provide assurances that the matters described in this press release will be successfully completed or that the company will realize the anticipated benefits of any transaction. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to: global economic and market conditions; the war on terrorism and the potential for war or other hostilities in other parts of the world; the availability of financing and lines of credit; successful integration of acquired or merged businesses; changes in interest rates; management's ability to forecast revenues and control expenses, especially on a quarterly basis; unexpected decline in revenues without a corresponding and timely slowdown in expense growth; the company's ability to retain key management and employees; intense competition and the company's ability to meet demand at competitive prices and to continue to introduce new products and new versions of existing products that keep pace with technological developments, satisfy increasingly sophisticated customer requirements and achieve market acceptance; relationships with significant suppliers and customers; as well as other risks and uncertainties, including but not limited to those detailed from time to time in Wireless Age Communications, Inc. SEC filings. Wireless Age Communications, Inc. undertakes no obligation to update information contained in this release. For further information regarding risks and uncertainties associated with Wireless Age Communications, Inc.'s business, please refer to the risks and uncertainties detailed from time to time in Wireless Age Communications, Inc.'s SEC filings.